Give Mayor Nutter credit for doing his level best to plug a projected $1 billion budget shortfall over five years.
The gaping hole in the budget was thrust on the new mayor by the swift and steep economic downturn that has impacted cities, states, businesses and individuals alike.
Everyone is feeling the pinch sparked by the burst nationally in the housing bubble. Nutter is attempting to be fair and judicious in spreading the pain. He's calling for layoffs, service cuts, and a freeze on planned tax cuts through 2015.
Some pools and libraries will be closed. And some fees are being raised. Even Nutter is taking a 10 percent pay cut from his $186,000 salary - a fine gesture.
Hopefully, all of the recent belt-tightening will be enough to get the city through what could be a long and deep recession. But Nutter acknowledged there is no quick fix, and the city is going to have to "grind it out" for a while.
As Nutter and his budget team manage the current fiscal crisis, the mayor must use this opportunity to bring about much-needed transformational change to the way the city operated in prior administrations.
In his inauguration speech in January, Nutter talked about "challenging the status quo" and trying "new ideas, new approaches." While the mayor has done some very good things, the city is still anxiously awaiting the promised bold changes.
Just managing the city's decline won't do. There needs to be an honest top-to-bottom assessment of all city services, departments and jobs to determine what is essential and what should be cut, even if there were no crisis. For example, does the city really need to maintain a fleet of 6,000 cars? Can the city afford the bike czar who was hired just last month? Is every department - such as the mayor's Office of Community Services - crucial? Maybe, but let's find out for sure.
Some of Nutter's proposed cuts show there are luxuries - such as the $355,000 for the Mummers Parade - that unfortunately the city can no longer afford. Much greater use of technology could also make the city more efficient and eliminate the need for some jobs. Nutter's planned 311 system could be a good first step.
Long-term, the city needs to drastically reduce its personnel, health insurance and pension costs. That's the 800-pound gorilla that eats much of the tax revenue.
The city already has more former employees (33,907) collecting pension checks and health benefits than current employees (28,701) coming to work. It will only get worse. Pension and retiree costs are projected to take up 28 percent of the city budget by 2012.
Nutter put off union negotiations for a year. The ongoing contract talks are where the city can really reduce its costs. That's the heavy lifting that needs to occur if Nutter is serious about real change.
Nutter's initial $4 billion budget increased spending for most departments and failed to get in front of the economic troubles that were looming even then. Granted, the economic woes have gotten much worse just since September.
Nutter and the city's finances face a serious jam. That's all the more reason the mayor needs to muster the will to make tough choices and bring about real change.
The city unions and City Council will resist change the most. But Nutter should keep in mind that it's the taxpayers who must come first. They elected him in large measure because of his promise of change.